MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock - Currency: USD
MITK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. Both the profitability and the financial health of MITK get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on MITK. These ratings would make MITK suitable for value investing!
1. Profitability
1.1 Basic Checks
MITK had positive earnings in the past year.
MITK had a positive operating cash flow in the past year.
Each year in the past 5 years MITK has been profitable.
Each year in the past 5 years MITK had a positive operating cash flow.
1.2 Ratios
MITK has a better Return On Assets (1.13%) than 66.78% of its industry peers.
MITK's Return On Equity of 2.22% is fine compared to the rest of the industry. MITK outperforms 67.49% of its industry peers.
The Return On Invested Capital of MITK (2.08%) is better than 70.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MITK is significantly below the industry average of 12.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2.22% | ||
| ROIC | 2.08% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
1.3 Margins
MITK has a Profit Margin of 2.59%. This is in the better half of the industry: MITK outperforms 67.49% of its industry peers.
MITK's Profit Margin has declined in the last couple of years.
MITK's Operating Margin of 5.54% is fine compared to the rest of the industry. MITK outperforms 72.44% of its industry peers.
In the last couple of years the Operating Margin of MITK has declined.
MITK has a Gross Margin of 85.61%. This is amongst the best in the industry. MITK outperforms 92.93% of its industry peers.
MITK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.54% | ||
| PM (TTM) | 2.59% | ||
| GM | 85.61% |
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MITK is destroying value.
The number of shares outstanding for MITK has been reduced compared to 1 year ago.
MITK has more shares outstanding than it did 5 years ago.
MITK has a worse debt/assets ratio than last year.
2.2 Solvency
MITK has an Altman-Z score of 2.03. This is not the best score and indicates that MITK is in the grey zone with still only limited risk for bankruptcy at the moment.
MITK has a Altman-Z score (2.03) which is comparable to the rest of the industry.
MITK has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as MITK would need 3.69 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.69, MITK is doing good in the industry, outperforming 63.25% of the companies in the same industry.
MITK has a Debt/Equity ratio of 0.74. This is a neutral value indicating MITK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, MITK is doing worse than 70.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.22
WACC9.36%
2.3 Liquidity
MITK has a Current Ratio of 4.59. This indicates that MITK is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MITK (4.59) is better than 83.39% of its industry peers.
A Quick Ratio of 4.59 indicates that MITK has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.59, MITK belongs to the top of the industry, outperforming 83.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.59 | ||
| Quick Ratio | 4.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.32% over the past year.
Measured over the past years, MITK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.42% on average per year.
The Revenue has decreased by -0.27% in the past year.
The Revenue has been growing by 15.26% on average over the past years. This is quite good.
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
Revenue 1Y (TTM)-0.27%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
3.2 Future
Based on estimates for the next years, MITK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.33% on average per year.
MITK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.56% yearly.
EPS Next Y-5.61%
EPS Next 2Y7.86%
EPS Next 3Y13.33%
EPS Next 5YN/A
Revenue Next Year3.15%
Revenue Next 2Y6.02%
Revenue Next 3Y8.56%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MITK is valuated reasonably with a Price/Earnings ratio of 8.08.
Based on the Price/Earnings ratio, MITK is valued cheaper than 93.64% of the companies in the same industry.
MITK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.12.
A Price/Forward Earnings ratio of 7.89 indicates a rather cheap valuation of MITK.
94.35% of the companies in the same industry are more expensive than MITK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, MITK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
MITK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MITK is cheaper than 85.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MITK is valued cheaply inside the industry as 95.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.92 | ||
| EV/EBITDA | 15.03 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
MITK's earnings are expected to grow with 13.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y7.86%
EPS Next 3Y13.33%
5. Dividend
5.1 Amount
MITK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.81
+0.35 (+4.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners79.08%
Inst Owner Change0.51%
Ins Owners1.71%
Ins Owner Change9.71%
Market Cap398.56M
Analysts81.67
Price Target13.36 (51.65%)
Short Float %6.32%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.94%
Min EPS beat(2)1.42%
Max EPS beat(2)88.46%
EPS beat(4)2
Avg EPS beat(4)17.82%
Min EPS beat(4)-12.85%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)12.24%
EPS beat(12)8
Avg EPS beat(12)15.13%
EPS beat(16)12
Avg EPS beat(16)17.39%
Revenue beat(2)2
Avg Revenue beat(2)1.73%
Min Revenue beat(2)0.88%
Max Revenue beat(2)2.59%
Revenue beat(4)2
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-8.11%
Max Revenue beat(4)2.59%
Revenue beat(8)4
Avg Revenue beat(8)1.02%
Revenue beat(12)6
Avg Revenue beat(12)2.69%
Revenue beat(16)9
Avg Revenue beat(16)3.41%
PT rev (1m)0%
PT rev (3m)3.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.44%
EPS NY rev (1m)0%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 7.89 | ||
| P/S | 2.31 | ||
| P/FCF | 9.92 | ||
| P/OCF | 9.55 | ||
| P/B | 1.98 | ||
| P/tB | 14.03 | ||
| EV/EBITDA | 15.03 |
EPS(TTM)1.09
EY12.37%
EPS(NY)1.12
Fwd EY12.68%
FCF(TTM)0.89
FCFY10.08%
OCF(TTM)0.92
OCFY10.47%
SpS3.81
BVpS4.44
TBVpS0.63
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2.22% | ||
| ROCE | 2.67% | ||
| ROIC | 2.08% | ||
| ROICexc | 3.14% | ||
| ROICexgc | 11.65% | ||
| OM | 5.54% | ||
| PM (TTM) | 2.59% | ||
| GM | 85.61% | ||
| FCFM | 23.31% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
ROICexc(3y)4.75%
ROICexc(5y)6.3%
ROICexgc(3y)31.47%
ROICexgc(5y)27.48%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexcg growth 3Y-20.18%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.05%
ROICexc growth 5YN/A
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 5.63 | ||
| Cap/Depr | 9.16% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 158.71% | ||
| Profit Quality | 901.19% | ||
| Current Ratio | 4.59 | ||
| Quick Ratio | 4.59 | ||
| Altman-Z | 2.03 |
F-Score6
WACC9.36%
ROIC/WACC0.22
Cap/Depr(3y)7.2%
Cap/Depr(5y)9.44%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.83%
Profit Quality(3y)714.7%
Profit Quality(5y)578.49%
High Growth Momentum
Growth
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
EPS Next Y-5.61%
EPS Next 2Y7.86%
EPS Next 3Y13.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.27%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
Revenue Next Year3.15%
Revenue Next 2Y6.02%
Revenue Next 3Y8.56%
Revenue Next 5YN/A
EBIT growth 1Y118.97%
EBIT growth 3Y-36.3%
EBIT growth 5YN/A
EBIT Next Year16.59%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y41.59%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y42.08%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%